Asia's first ship-to-containership LNG bunkering operations launched in Singapore

SINGAPORE is now able to provide liquefied natural gas (LNG) bunkering to larger LNG-powered vessels, following the launch of the first ship-to-containership bunkering operation in Asia on Wednesday.

The bunkering operation involving the containership CMA CGM Scandola and Singapore's first LNG bunkering vessel, the FueLNG Bellina, began around 4am on Wednesday. The operation to transfer 7,100 cubic metres (cu m) of LNG to the containership is expected to be completed on Wednesday night.

FueLNG Bellina is owned by FueLNG, a joint venture between Keppel Offshore & Marine (Keppel O&M) and Shell Eastern Petroleum. It has a capacity of 7,500 cu m of LNG, or the equivalent of about 300 trucks used for truck-to-ship LNG bunkering operations.

With the capability to conduct ship-to-containership bunkering, Singapore is now able to provide bunkering to larger LNG-powered vessels like the 15,000 TEU (twenty-foot equivalent unit) CMA CGM Scandola.

The bunkering ship also makes it possible to complete bunkering within the window of container loading and discharging, which will shorten ships' port stay time. The execution of these operations for the CMA CGM Scandola marked the first time such operations have been conducted simultaneously in Asia.

At an event marking the launch of the bunkering operations on Wednesday, Chris Ong, chairman of FueLNG and chief executive officer of Keppel O&M, shared that FueLNG has completed more than 300 truck-to-ship LNG bunkering operations in Singapore.

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"With the commencement of ship-to-ship LNG bunkering in Singapore this year, we anticipate that the annual LNG bunkering volumes can increase by about 80 to 90 times," he said.

Senior Minister of State for Transport and Foreign Affairs Chee Hong Tat, who also attended the launch, noted that LNG is one step in the transition to meeting targets set by the International Maritime Organization to cut greenhouse gas emissions by at least 50 per cent by 2050, compared to 2008 levels.

"It is not perfect. LNG still has carbon emissions, and that's why we are actively working with industry partners and research institutions to try and find even better, even cleaner fuel sources," he said. "LNG is a very good transition that will allow us to achieve reduced carbon emissions as we progress towards this longer-term goal."

LNG offers reductions of 99 per cent for sulphur dioxide, 91 per cent for particulate matter emissions and 92 per cent for nitrogen oxide emissions compared to traditional marine fuels. LNG-powered vessels also emit up to 20 per cent less carbon dioxide than conventional marine fuel-powered systems.

A Shell LNG Outlook report in 2020 estimated global LNG bunkering demand to grow to 30 to 50 million tonnes per annum (MTPA) by 2040. Currently, about 400 LNG-fuelled vessels are in operation or on order, resulting in an expected demand of nearly 3.5 MTPA of LNG as marine fuel.

Singapore is a new addition to Shell's current global LNG bunkering network of eight countries and nine ports, said Tahir Faruqui, director of FueLNG and head of Shell Downstream LNG. "We plan to double this bunkering infrastructure on key international trade routes by the mid-2020s, so that we can support the sector with the capabilities to tackle emissions with urgency.

Stephane Courquin, chief executive officer of CMA CGM Asia Pacific, said that the shipping and logistics player has lined up five of CMA CGM Scandola's sisterships for LNG bunkering in Singapore this year.

Its 23,000 TEU CMA CGM Jacques Saade will become the world's largest LNG-powered container vessel to stop en route in Singapore when it arrives next month.

"These milestones underline our commitment to fuel our vessels with LNG and cleaner energy sources as we work towards decarbonising the shipping supply," Mr Courquin said.

Thanking partners including the Ministry of Transport, the Maritime and Port Authority of Singapore (MPA) and PSA for their roles in ensuring the operations were successful, he added: "Together, we can further develop the global LNG infrastructure for the shipping industry. With accessibility to LNG sources, carriers will be more inclined to adopt LNG for voyages that we make."

Said MPA chief executive Quah Ley Hoon: "As the world's top bunkering and transshipment hub port, MPA is pleased that we are able to facilitate Asia's very first ship-to-ship LNG bunkering operation with simultaneous cargo operations. We will continue to work with the industry to promote LNG bunkering in Singapore and drive the transition to more sustainable shipping."